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Funding Profile: New Jersey

Faced with runaway growth and mounting urban pressures, New Jersey has developed model land conservation programs that have enjoyed unprecedented public support. These efforts began in 1961 when then-Governor Robert Meyner introduced New Jersey's Green Acres Open Space Land Conservation Program. Financed by an unbroken record of nine bond approvals totaling over $1.4 billion, the Green Acres program is touted as one of the most successful state land preservation programs in the country's history. To date, over 350,000 acres of state, county, municipal and nonprofit-held open space have been preserved and hundreds of public parks have been developed with Green Acres funds.

A key to the success of New Jersey's land conservation program is a commitment to providing local governments with options and incentives. Model enabling legislation was passed in 1989 that empowered New Jersey counties to assess an open space preservation tax with voter approval. While municipalities already had the general taxing authority extended to counties, the state legislation prompted many communities to establish local open space trust funds.

More recently, the Green Acres Planning Incentive Program was designed as part of the Green Acres grant program to give funding preferences to communities that establish these trust funds. And in 1997, authority was broadened to allow revenues to be used for park development, maintenance and historic preservation, as well as land acquisition. In all, 92 municipalities and 16 counties have established open space trust funds and raised more than $148 million to protect almost 24,114 acres of land.

The following chronology provides highlights of New Jersey's unique and successful land conservation programs, from the first Green Acres bond in 1961 to the expansion of open space trust fund enabling legislation in 1997.

>Chronology of Land Conservation

1961 and 1971: The first two Green Acres bond issues focused solely on financing public open space acquisitions. These bonds provided $80 million for land purchases for state parks, forests, natural areas and fish and wildlife management areas and $60 million for 50% matching grants for county and municipal land purchases. (Bonds were selected as the funding mechanism because of their ability to furnish the large sums of money that are needed immediately to purchase real estate. Bonds also fairly allocate the burden of repayment among all citizens, present and future.)

The Green Acres Program is governed by the following four bureaus of the Department of Environmental Protection (DEP): the Bureau of Green Trust Management; the Bureau of State Acquisition; the Bureau of Legal Services and Compliance, which monitors those municipal and county sites acquired and developed with Green Acres Trust funds, as well as sites acquired by nonprofit organizations with Green Acres matching grants; and the Bureau of Open Space and Outdoor Recreation Planning, which provides environmental planning and technical assistance for municipal, county, nonprofit and state open space acquisition and recreational development efforts.

1968: The New Jersey Natural Lands Trust was established by the New Jersey state legislature. The mission of this trust is to preserve land in its natural state for the enjoyment of the public and to protect biodiversity. Operating under the Division of Parks and Forestry, it is an independent, incorporated state land trust organization.

1974: Recreation facility development funding was added to the Green Acres Program. This $200 million bond issue provided $100 million for state acquisition and development projects and an equal amount for local acquisition and development matching grants. This bond proposal was one of six public questions on the ballot in 1974 and the only one approved. 1976: The Tax Exemption Act was created as a cost-effective program to help satisfy the need for public open space areas. This act encourages the dedication of privately owned open space for public use by providing complete exemption from local property taxes for a renewable period of three years to eligible nonprofit organizations that own recreation or conservation land. Close to 35,000 acres of privately owned lands have been opened to the public for a variety of conservation and recreational uses. Administered by the Bureau of Green Trust Management, over 50 organizations currently participate in the tax exemption program, protecting 195 sites in 115 municipalities throughout New Jersey.

1978: This 1978 Green Acres bond, also $200 million, continued state acquisition and development project financing and local matching grants but required that equal amounts be spent in urban and non-urban areas.

1981: The Farmland Preservation Program was created. The major purpose of this program is to strengthen the agricultural industry by purchasing development rights on farmland and sharing with farmers the cost of soil and water conservation practices. With the 1981 and 1989 bonds, $100 million was spent on these purchases. The 1992 bond (see below) provided for another $50 million for easement purchases. Much of the privately owned non-developed land in New Jersey is in agricultural use.

1983: Of the eight questions on the ballot in 1983, three were related to environmental protection. All three passed. One measure created a permanent land conservation funding source, called the Green Trust. The Green Trust is a revolving fund that provides low interest loans (2%) for local park acquisition and development projects. Initially, $83 million was placed in the Trust. The remaining $52 million of the 1983 $135 million bond measure was earmarked for state projects. As part of a combined $100 million bond issue for cultural centers, historic sites and Green Acres, $35 million was added to the Green Trust in 1987. The Bureau of Green Trust Management works with local government units from the time of application through project completion.

1989: In the Open Space Preservation Bond Act of 1989, $230 million was allocated for open space and outdoor recreation purposes. $140 million was designated for Green Trust loans and grants, $80 million for state acquisition and development and $10 million for qualifying tax-exempt nonprofit organizations to acquire open space. The Green Acres nonprofit funding program, called the Nonprofit Acquisition Grant Program, provides 50 percent matching grants to nonprofit organizations to acquire open space for public conservation and outdoor recreation purposes. In the 1989, 1992 and 1995 Green Acres bond issues, a total of $45 million was set aside for matching grants to nonprofit organizations. The Bureau of Green Trust Management administers the grants to nonprofit organizations.

The partnership between government and nonprofit organizations has been a particularly successful component of the Green Acres Program. According to retired Assemblymember Maureen Ogden, this partnership provides important lessons in how individuals and private organizations can serve as "perpetual guardians of critical land." In addition, New Jersey has many summer camps operated by nonprofit organizations in the state. While the Green Acres program has purchased some camps, its focus is on purchasing conservation easements that allow for camp operation while preserving the natural resource value of these lands.

1989 was also the year the state legislature passed landmark legislation enabling New Jersey counties to establish voter-approved Open Space Trust Funds. Funds are generated through property taxes (typically a penny or two per $100 in value) and used for land acquisition. This program has been lauded for giving local communities flexibility and resources needed to protect threatened open space, agricultural land and historical sites. From 1989-1997, a total of 13 counties and 53 municipalities had passed referendums to create funding sources for open space preservation.

1992: In the Green Acres, Clean Water, Farmland and Historic Preservation Bond Act of 1992, $200 million was reserved for open space and outdoor recreation purposes.

Through the 1989 and 1992 bond issues, the Green Trust received $240 million for county and municipal park acquisition and development projects, and the state acquisition and development programs received $160 million.

1995: The $350 million bond issue, The Green Acres, Farmland and Historic Preservation, and Blue Acres Bond Act of 1995, was expected to be a hard sell despite the backing of a diverse group of organizations. With only state assembly races on the ballot, a low voter turnout was expected. As a result, some believed that older, more tax-averse voters would vote in disproportionate numbers, thereby lessening the chances of passing a bond. A grassroots effort was mounted through constituent organizations. These groups alerted their membership, who in turn was counted on to carry the message to a wider audience. The "New Jersey Coalition for a Clean and Green Tomorrow" was born out of this effort. This campaign included grassroots organizing, press events, and newspaper, television and radio advertising. The measure passed with 68 percent of the vote.

This 1995 Green Acres bond issue contained $30 million for a new program called Blue Acres. The Bureau of Green Trust Management administers the $15 million portion set aside under the "Coastal Blue Acres" category. Designated municipalities and counties can receive loans and grants from this program to acquire lands in coastal areas that have been damaged by storms, are prone to storm damage, or buffer or protect other lands from storm damage.

1996: With the passage of the Green Acres Planning Incentive Program, legislators gave funding preferences to communities that create open-space trust funds. The program makes competitive awards to counties and municipalities that have created a dedicated tax and an open space plan. Communities are now eligible to receive a 25 percent grant and a 2% interest loan for 20 years that makes the purchase of land immediately possible. Proceeds from the open space tax are then used to pay off the loan.

1997: In February 1997, the state legislature broadened its Open Space Trust Funds enabling legislation to allow funds to be used for park development, maintenance and historic preservation as well as land acquisition.

1998: This year, the legislature stepped up its land conservation efforts by placing a $1 billion constitutional amendment and bond measure on the November ballot that will protect half the state's remaining 2 million acres of undeveloped land over the next 10 years. With open space preservation at the top of her agenda, Governor Christine Todd Whitman fought hard to get this ambitious measure on the ballot. As reported in the New York Times, public support ranked high on statewide public opinion polls. The bill passed the General Assembly 70 - 3 and the Senate by a unanimous vote.

On November 3, 1998, the ballot measure was approved with 66% of the vote. The measure dedicates, for up to 30 years, ¼ of one cent of the existing state sales tax for acquisition and development of lands for conservation and recreation, farmland and historic preservation. The approval of this measure creates a permanent funding source for the state Green Acres program and replaces periodic bonding. The sales tax revenue is expected to raise $98 million per year for land acquisition and will raise nearly $200 million a year for the next 10 years, meeting the Governor's financial objective for land preservation.

The Governor's Council on New Jersey Outdoors, the organization that initially recommended the 1 million acre goal, has also suggested a breakdown of land protection: 500,000 acres of farmland; 200,000 acres of open space for recreation; 100,000 acres for watershed protection; and 200,000 acres for greenways, trails, and corridors.

1999: In June 1999, the legislature passed a bill that establishes the statutory framework necessary to implement the preservation plan approved by a 2-1 margin of New Jersey voters in November 1998. The 1998 vote amended the New Jersey constitution to provide a stable source of funding to acquire and preserve open space, farmland and historic sites around the state. The amendment dedicates $98 million annually in state sales and use tax revenue for years 1999-2009 to finance preservation efforts. From 2009-2029 the measure authorizes the payment of debt on any bonds issued for preservation purposes by dedicating an amount sufficient to pay the debt, up to $98 million annually (or up to $1 billion in revenue bonds over ten years).

The legislation establishes the Garden State Preservation Trust (GSPT), a nine member board that will receive and approve projects submitted by the Department of Environmental Protection (DEP) and the State Agriculture Development Committee (SADC), at least twice a year. The GSPT will submit at least two appropriation bills each year to fund projects.

The Act also establishes the Garden State Preservation Trust Fund Account (Trust Fund) which will receive the $98 million annually from 1999-2009. From FY 2010 through and including FY 2029, debt service on the bonds shall be satisfied by funds deposited into the trust fund from the general fund. These funds will not exceed $98 million during a fiscal year. The bill will allow projects funded under the Trust Fund to begin immediately by allowing $90 million to be appropriated through the appropriations act for FY 2000. This will appropriate money for eligible projects prior to the establishment of the GSPT which is expected to be operational in the Fall of 1999.

So municipalities do not suffer a loss of taxes due to state acquisition of lands, this bill extends payment in lieu of taxes to municipalities in which lands are purchased by the DEP for recreational or conservation purposes by this constitutionally dedicated money. This does not include farmland preservation lands. Payments will be made from the general fund. The legislation includes a 13-year declining percentage schedule and thereafter includes a $2, $5, $10, or $20 per acre payment depending on the acreage of land in the municipality owned in fee simple for recreational and conservation purposes by the state or qualified nonprofit organizations.